Victorian gas decision to boost manufacturing capability

The Victorian state government’s decision to restore onshore conventional gas exploration and development in Victoria starting July 1 next year will help strengthen Australia’s manufacturing capability.

Chemistry Australia has announced their support for a science-based and transparent regulatory framework that will underpin gas production in the state.

Chemistry Australia CEO Samantha Read said the move was a “significant step” to improve the gas supply market on the East Coast.

“Sufficient supply of affordable gas is vital for our industry to maintain its manufacturing capability and significant contribution to the Australian economy,” she said.

“We urge all states to follow the Victorian Government’s lead and lift existing bans on conventional gas developments.”

The chemical industry generates $286 million for every petajoule of gas it uses, while the gas industry remains a major contributor with $38 billion every year.

Resources, water and northern Australia minister Keith Pitt said the resources sector will play a “vitally important” in leading the economy’s recovery from the coronavirus.

“I am pleased the Victorian Government now accepts the true science around the benefits of developing the state’s gas industry and what it will mean for manufacturing,” he said.

“Victoria has potentially enormous shale and tight gas resources that could generate billions in revenue and create thousands of locals jobs.”